How the value of the pound affects you

Rosie Vare

While you might hear about the progress of the pound on a daily basis, do you really know what it means for you?

Here we take a closer look at how the fluctuating value affects people in their daily lives.

See also: Everything you need to know about the new plastic £20 note

See also: Britons favouring staycations over travel abroad due to weak pound

It covers everything from the impact on imported food and cars to how UK pensions paid to expats overseas will be affected.

A strong pound can mean more holiday money when you travel abroad but it also determines the cost of imports that you buy at home.

If we are going through a period where the pound has weakened then we will end up paying more for imported food, wine and cars - among other things.

You'll also feel the effect when you go to fill up your car because petrol and diesel prices will be higher.

This is why a weak pound can increase inflation and if wage growth doesn't keep pace, we can end up worse off.

Investors can benefit, however, because many British companies make profits overseas.

This is why, as the pound has fallen, shares in some of these firms have gone up but the opposite happens where overseas investors earn income in pounds.

The value of UK pensions paid to expats living abroad, for instance, will fall if the pound falls.

If you own a property abroad its value will rise if the pound falls, but so will the costs of maintaining it.